On Wednesday, Ola Electric’s stock continued to rise, rising more than 13% during intraday trading. Around 10:27 a.m., the company’s shares were up 13.23% at Rs 50.76 on the Bombay Stock Exchange (BSE).
The spike was caused by high trade volumes. For the manufacturer of electric two-wheelers, this is the second consecutive session of gains.
On Tuesday, the stock climbed almost sharply after founder and chairman Bhavish Aggarwal outlined an aggressive strategy to reclaim market share and improve profitability in India’s competitive EV segment.
The corporation had a rough year before the latest rise. Despite a strong recovery this week, investors remain apprehensive as Ola Electric shares have fallen 41% thus far in 2025 and nearly 63% over the last 12 months.
However, the impending GST adjustments present an urgent obstacle to the recovery. The government intends to reduce the GST rates on a number of goods and services by Diwali, according to Prime Minister Narendra Modi‘s announcement last week. One of the options being discussed is lowering the GST on small automobiles from 28% to 18%.
Analysts caution that this would jeopardize the EV industry’s tenuous revival. Although the measure would increase overall demand for cars, HSBC Global Research warned that if states increase road charges to make up for lost revenue, it might harm manufacturers of electric vehicles.
Nomura expressed similar worries, pointing out that the price difference between gasoline and electric vehicles will increase significantly if the GST drop on internal combustion engine vehicles is implemented, which could hinder the adoption of EVs.
The policy’s ambiguity coincides with Ola Electric’s financial performance still being severely strained. For the quarter ended June 30, the company reported a consolidated net loss of Rs 428 crore, up 23% year-on-year, while revenues halved to Rs 828 crore. EBITDA losses widened to Rs 237 crore, with margins slipping to -28.6% from -12.5% a year earlier.
The market appears to be supporting Ola Electric’s audacious plan for rebirth for the time being, but the true test is yet to come. Will the EV movement be derailed by government tax adjustments, or will they lead to a more widespread mobility boom that is advantageous to all?
The question for Ola investors is whether this surge is a temporary rebound or the beginning of a reversal.
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